Tag: British American Tobacco

  • BAT Expects Lower First-Half Profit

    BAT Expects Lower First-Half Profit

    Photo: BAT

    Declining sales of cigarettes and growing competition from illegal vapes in the U.S. will likely dent British American Tobacco’s 2024 earnings, the tobacco manufacturer said in a pre-close trading update on June 4.

    Analysts estimate BAT will make £27.60 billion ($35.35 billion) in total organic revenue and adjusted operating profit of £12.48 billion for the year, according to The Wall Street Journal.

    BAT noted that while the U.S. was showing some early signs of recovery, traditional cigarette volumes were down around 9 percent so far this year across the industry.

    Chris Beckett, head of equity research at Quilter Cheviot, told Reuters BAT’s anticipated decline in first-half revenue and profit was “more pronounced” than expected.

    The company expects half-year revenue and adjusted profit from operations to fall by low single digits, but says it is on track to deliver its guidance for the full year.

    “We expect our performance to be second-half weighted, mainly driven by wholesaler inventory movements related to continued investment in our U.S. commercial actions, as well as the phasing of new launches,” said BAT CEO Tadeu Marroco.

    “Our guidance also reflects ongoing macro-economic pressures, particularly in the U.S. market and continued lack of effective enforcement against the growing illicit vapor segment. As a result, we expect our H1 revenue and adjusted profit from operations to be down by low-single digits on an organic, constant currency basis.”

  • BAT Still Committed to Smokeless Future

    BAT Still Committed to Smokeless Future

    Josh Fett (Photo: BAT)

    On World Vape Day (May 30), British American Tobacco outlined a strategic vision to accelerate progress toward building a smokeless world, especially for the Asia-Pacific region, to encourage adult smokers to switch to smokeless alternatives such as vapor products.

    The smoking prevalence among adults in the Asia-Pacific region is amongst the highest in the world, though it continues to fall each year in some markets. However, with various governments setting goals to be “smoke-free” (defined as smoking prevalence falling to 5 percent or less), BAT says that more must be done to realize their ambitions.

    In its vision, the multinational sets out four principles that it believes should be applied for effective and impactful regulation relating to smokeless tobacco and nicotine products:

    1. Access to consumer relevant products: regulations in all countries where cigarettes are sold should also allow a wide range of smokeless alternatives to ensure that consumers can access these alternatives and make informed choices about switching based on the best available scientific evidence.
    2. Adult-only consumer: the use and sale of smokeless tobacco and nicotine products by and to the underage should be prohibited by law.
    3. Product quality and safety: robust and properly enforced quality and safety standards should be at the heart of regulation, to protect consumers.
    4. Robust enforcement: Regulation should provide enforcement authorities with the necessary powers to apply penalties and sanctions to those who fail to comply with regulations, particularly those who supply non-compliant products and provide product to those who are underage.

    “More than 1 billion people globally continue to smoke despite the serious risks,” the company wrote in a statement. “According to population modelling studies, a significant reduction in premature deaths could be achieved if smokers switched exclusively to reduced-risk alternatives.

    “To capitalize on the public health potential offered by smokeless products, appropriate regulation is required to encourage adult smokers to switch, protect consumers with stringent safety standards and prevent underage access and use.”

    BAT noted that countries that embraced this approach have witnessed significant reductions in smoking rates as smokers opt for noncombustible products. The multinational cited the experience of New Zealand, where daily smoking rates have plummeted to 6.8 percent in 2023 from 8.6 percent the previous year, and 16.4 percent in 2012. The U.K., U.S. and Japan too are reporting their lowest smoking rates on record, while Sweden is on track to declaring itself smokefree this year, 16 years ahead of the 2040 EU target.

    According to BAT, the success of these nations in reducing cigarette consumption is largely a result of widespread awareness, availability and usage of smokeless alternatives, such as vapor products, heated products and nicotine pouches.

    “The migration of smokers to these alternatives is crucial both for countries looking to reduce their smoking rates and for global public health more broadly,” said Josh Fett, BAT’s head of corporate and regulatory affairs in the Asia Pacific Region. “Whether or not governments are able to take advantage of these products and maximize their harm reduction potential depends as much on the implementation of progressive, risk-proportionate regulation as it does on changes in consumer behavior.”

  • BAT Kenya Ups Leaf Price to Secure Supply

    BAT Kenya Ups Leaf Price to Secure Supply

    Photo: Taco Tuinstra

    BAT Kenya is paying more for leaf to ensure the security of its supply, reports Business Daily Africa.

    In fiscal year 2023, the cigarette manufacturer increased its per-kilo price by 5 percent to KES198.75 ($1.50) even as the number of contracted farmers dropped to 1,672, down nearly 20 percent from the previous fiscal year.

    Only five years ago, BAT had access to 5,700 tobacco growers in Kenya. The drop has been driven in part by farmers abandoning tobacco in favor of alternative crops such as beans and maize, along with pressure from anti-smoking activists.

    To help stem the decline, the company has been offering free tobacco seedlings, fertilizer and personal protective equipment. In addition, it has encouraged crop diversification by issuing farmers subsidized maize and avocado seeds, allowing them to earn extra income without abandoning tobacco.

    The company has also been introducing hybrid tobacco seed varieties to boost crop yields and disease resistance, and low-cost technologies such as mechanized ploughing and ridges to help growers cut cost and maximize returns.

    BAT Kenya paid KES954 million for its total tobacco requirements in 2023 compared with KES946 million in 2022. Last year, it purchased 4.8 million kg of leaf, down from 8.9 million kg in 2019.

  • Driving Transformation

    Driving Transformation

    Photos: BAT

    BAT’S new U.K. Innovation Center demonstrates the company’s commitment to become a predominantly smokeless business.

    By George Gay

    Is BAT edging into the field of transhumanism, specifically democratic transhumanism? This thought struck me when, during an introductory presentation ahead of a tour of BAT’s new U.K. Innovation Center in Southampton, the company’s director of research and science, James Murphy, described the range of BAT products now on offer, a seven-category range that transcends nicotine to include well-being and stimulation products.

    Using science, technology and innovation to take human beings to the next level is, of course, a rough definition of transhumanism, and doing so with a product that can be afforded by most people would put this project into the realm of democratic transhumanism. Certainly, such speculation is not at odds with BAT’s stated aim of creating “A Better Tomorrow.”

    On a more practical level, what to me was most significant about the Innovation Center and the research and development site within which it sits was the ambition on display. Hundreds of specialists are working there on prototype smokeless tobacco and nicotine products, on scientific research to determine the relative risk of using such products compared to smoking cigarettes and on building capabilities beyond nicotine. This is tobacco harm reduction (THR) plus—writ large.

    Doing Good and Making Money

    Of course, a lot of people opposed to or unconvinced of the benefits of THR claim that the major tobacco companies are only in business to turn a handsome profit and don’t care about the harm they cause nor about reducing it. And it is true that these companies are hugely profitable. Murphy mentioned that BAT had reported revenues of just over £27 billion ($33.93 billion) and profits of about £12.5 billion in its latest full-year results. But what seems to get lost in this argument is that it is possible to do good while making a handsome profit: one only need look at pharmaceutical companies to realize this is true. Indeed, perhaps it is necessary to make such profits because the investments needed to reinvent an industry, which is what is happening in respect of the tobacco industry, are not inconsiderable.

    That BAT is reinventing its business can be seen from the fact that of the just-over £27 billion in revenue the company earned, £3.5 billion came from its new category business. Again, the cynics will point out that the new category business made up only a relatively small part of the overall business. And again, this is true, but that reading of the situation needs some grounding. BAT launched its first new category product only in 2013, so while it has been manufacturing traditional tobacco products and people have been consuming those products for more than 100 years, it has been offering new category products for just over 10 years. Additionally, while combustible tobacco products are on sale universally, because regulatory climates vary around the world, the sale of reduced-risk, noncombustible products is allowed only on about 55 percent to 60 percent of markets, something that Murphy chalked up as one of the challenges BAT faced. How, he wondered aloud, could more regulators be encouraged to embrace THR?

    Unfortunately, if the February Conference of the Parties (COP10) to the World Health Organization Framework Convention on Tobacco Control (FCTC) (see “Doubling Down on Failure,” page 12) is anything to go by, the answer to Murphy’s question must be, “with difficulty.” Apparently, the Global Alliance on Tobacco Control, previously known as the Framework Convention Alliance, used COP10 to hand its “Dirty Ashtray” award to the Philippines for having had the temerity to promote THR.

    And while the intellectual debate around THR bumps along the bottom in this way, there seems little hope of quickly expanding the number of markets where regulated THR products are made available. Not surprisingly, the WHO holds sway in many countries, especially those that find it difficult to fund independent health research.

    The investment in the Southampton facility follows the opening of BAT’s Innovation Centers in Italy and China.

    The Promise of New Products

    This is all very sad because those who call the FCTC shots refuse to engage with the tobacco industry even though the industry has much to say that is informed and interesting to anybody concerned with reducing the harm caused by cigarette smoking. And one industry voice worth listening to is that of Elaine Round, a geneticist who is head of the global life sciences team at Southampton, where she has been for two years on an international assignment for U.S.-based R.J. Reynolds, which BAT bought in 2017.

    Alongside Murphy, Round took part in the introductory presentation to a group of journalists, and it soon became clear that while she was involved in the THR quest in a scientific capacity, she also had skin in the game. Before describing some of the results of the emissions and toxicology tests that BAT carries out on its three main reduced-risk products, Round mentioned that she had joined Reynolds in 2008 when she saw a job description that indicated the company was making efforts around harm reduction. At that time, she said, people in her family smoked, and she wanted to make sure they had options to use reduced-risk products if they were unwilling to quit.

    That timeline, which suggests that the tobacco industry has been concerned with THR for longer than most people realize, probably needs some explanation. Reynolds was in the vanguard of the quest for reduced-risk products and, as far as I am aware, was the first company to produce a heated-tobacco product (HTP). That product, which was different from the HTPs available today and which, for various reasons, was commercially unsuccessful, nevertheless provided a spark that was later to be reignited.

    The three main reduced-risk products described by Round comprised the vaping device Vuse, the HTP Glo and the oral nicotine pouch Velo, for which BAT scientists have published respectively 81, 85 and 25 peer-reviewed studies. Vuse delivered toxicant levels 99 percent lower than those of a combustible cigarette, Round said, while Glo delivered toxicant levels 90 percent to 95 percent lower, and Velo delivered toxicant levels 99 percent lower compared with those of cigarette smoke.

    Velo nicotine pouches must comprise one of the most interesting reduced-risk products to emerge in recent years because they produce toxicant levels down even on those of snus, an oral product that has been credited with helping to reduce the smoking rate in Sweden to around 5 percent and having thereby sent lung cancer rates in that country crashing. Indeed, nicotine pouches sit comfortably alongside nicotine-replacement therapy products on the continuum of risk and are perhaps the most environmentally friendly of all the reduced-risk products being used to assist smokers to move away from cigarettes. It is not surprising, therefore, that BAT has demonstrated its confidence in this product by including in its Innovation Center a nicotine pouch pilot plant that allows researchers to go from concept to trial product in an hour.

    At BAT’s Southampton Innovation Center, specialists are working on prototype smokeless tobacco and nicotine products, on scientific research to determine the relative risk of such products compared to smoking cigarettes and on building capabilities beyond nicotine.

    Supporting the Mission

    Officially opened on March 7 in the presence of BAT’s entire management board, the Innovation Center is housed within BAT’s Southampton research and development facility, which has been in operation since 1956 on a site occupied by the company for more than 100 years. In a press note, BAT said the £30 million investment in the Innovation Center would support its mission to become a predominantly smokeless business in which 50 percent of its revenue was derived from noncombustibles by 2035.

    The group of journalists, of which I was one, was given, on March 8, a tour of the Innovation Center, entering by way of a vast atrium that put me in mind of going to school in a finger-concealing blazer with the words of my mother ringing in my ears, “you’ll soon grow into it.” Clearly, bigger and better things will be happening there in the years to come. Some of the Innovation Center was off limits because of commercial sensitivities, and we passed various spaces that were yet to be occupied. But we were taken into a large flavors laboratory, which is likely to be at the forefront of the battle to keep reduced-risk products appealing to adult consumers while complying with the seemingly inevitable restrictions imposed by regulators fearful of these products being used by those underaged. Overlooking the working, clean-space, nicotine-pouch pilot plant from a room above and adjacent to it was a highlight of the tour, but I was amazed, too, at the large number of specialists working at computers on new product design, until it was pointed out to me that products must be customized to a certain extent to meet the regulatory requirements and consumer preferences of many different markets.

    The Innovation Center provides nine specially designed technical spaces to aid the development of BAT’s portfolio of new category products. “These spaces are dedicated to research for modern oral nicotine pouches, for liquids and flavor for vapor products, for heated products and for well-being and stimulation beyond nicotine,” the press note said. “The investment will also support work on packaging, engineering, innovation development and system integration ….

    “The new facilities will bring together cross-functional and key R&D teams—with 400 highly specialized scientists and engineers, drawn from a range of fields, including biotechnology and clinical trials. These teams will accelerate the development of the next generation of BAT’s new category products and provide the robust evidence necessary to encourage adult smokers to switch to less risky alternatives, backed by science.”

    The inclusion of a nicotine pouch pilot plant at the Innovation Center demonstrates BAT’s confidence in the product category.

    A Positive Path

    Meanwhile, BAT said it had more than 1,600 specialists spread across the U.K., the U.S., Brazil, Indonesia, Malaysia and China. “The £30 million investment in the Southampton facility follows the opening of BAT’s Innovation Centers in Trieste, Italy, in 2021 and in Shenzhen, China, in 2022, and an investment of £300 million a year in R&D to develop new category products and establish substantiation of their reduced-risk potential,” the company said.

    This summary of the totality of BAT’s investment in R&D is significant because it gives an indication of the capability uplift the company has had to bring about within its ranks during a relatively short time and therefore its commitment to THR and, more latterly, well-being products. In 1956, and for a long time afterward, the R&D carried out at Southampton would have involved mostly scientists working with tobacco while in recent years, it has had to venture into fields formerly far beyond its comfort zone, so it has had to recruit, for instance, software engineers, formulation chemists and flavorists.

    I started this piece by speculating about whether BAT was venturing into transhumanism. That was a bit of a stretch, but it is worth noting that the company, at Southampton and its other Innovation Centers, is carrying on in a specialist field the humanist project that stretches back to the Enlightenment and the use of scientific methods to better understand the world and the place of humans within it. The cynics will point out that the Enlightenment journey has not always wound up in good places, and, again, this is true, but I cannot see how anybody could argue that the general direction of travel has not been hugely positive. Science-led THR, properly applied, follows in that direction.

    George Gay is Tobacco Reporter’s European editor, but his territory spans the globe. Based in London, George has covered the tobacco industry since 1982, initially for a U.K.-based publication and since 2004 for Tobacco Reporter. George’s understanding of industry issues, combined with his keen sense of observation and dry wit, have earned him a loyal following among Tobacco Reporter’s readers.
  • BAT to Make Smokeless Products in Hungary

    BAT to Make Smokeless Products in Hungary

    Photo: Csak Istvan

    BAT will establish a HUF60 billion ($162.12 billion) factory for smokeless products in Pecs, Hungary, creating 450 new jobs, reports Hungary Today.

    BAT already employs almost 1,000 people. According to Minister of Foreign Affairs and Trade Peter Szijjarto, the project will contribute to the success of two important Hungarian economic policy objectives—to boost exports and protect the environment. The Pecs factory is carbon neutral and will export more than 80 percent of its products, the minister noted.

    The project will also help develop Hungary’s southwestern region, which traditionally has received fewer investments than its western counterparts.

    Usman Zahur, BAT’s regional director for Central Europe, pointed out that the Pecs unit could become a major manufacturing center for smokeless alternatives, building on more than 30 years of cooperation with Hungary.

    “This significant investment is an important step toward a smoke-free world, offering smokers better alternatives to cigarettes,” he was quoted as saying. “The investment further reinforces Hungary’s strategic importance in our long-term plans to have 50 percent of our revenues from new category products by 2035. Our manufacturing capabilities, highlighted by the Pecs center, are key to achieving this goal.”

  • Former BAT Company Does Ruble-Yuan Swaps

    Former BAT Company Does Ruble-Yuan Swaps

    Photo: mtrommer

    I.T.M.S. entered into ruble-yuan currency swaps in 2023 to generate interest income, reports Interfax.

    Income from the purchase and sale of currency under swap transactions reached RUB2.56 billion ($27.23 million) last year, with a loss of RUB1.654 billion rubles, the company wrote in its annual report.

    The Bank of Russia launched a new permanent instrument for the provision of yuan in January 2023. In March 2024, the Central Bank announced that at the beginning and end of each month it would temporarily double the maximum limit on transactions for currency swap transactions.

    On the first two and last two trading business days of each month, the maximum daily transaction volume would be RMB20 billion, with the limit on other trading remaining at RMB10 billion.

    I.T.M.S. comprises British American Tobacco’s former Russian assets, which the multinational sold to a consortium led by local management after Russia invaded Ukraine.

    Russia has been partially cut off from the Western financial system due to war-related sanctions. In response, Moscow has been strengthening ties with China and boosting its own systems.

  • Celebrating Two Decades of Excellence

    Celebrating Two Decades of Excellence

    Odiri Erewa-Meggison

    Odiri Erewa-Meggison reflects on the significance of BAT’s Ibadan factory in Nigeria as it celebrates its 20th anniversary.

    Contributed

    This year, BAT celebrates the 20th anniversary of its Ibadan factory in Nigeria. To mark the occasion, Precise Platform, a PR agency, interviewed Odiri Erewa-Meggison, external affairs director of BAT West and Central Africa.

    Precise Platform: Please tell us about the significance of celebrating 20 years of manufacturing excellence for your organization.

    Odiri Erewa-Meggison: Celebrating 20 years of manufacturing excellence holds immense significance for BAT West and Central Africa on several fronts. Firstly, it marks a significant milestone in our journey, showcasing two decades of dedication, innovation and resilience in the manufacturing industry within the region. This achievement underscores our commitment to quality, responsible and sustainable business practices in all aspects of our operations.

    [We are] celebrating our two decades of quality output, impacts and milestones despite the economic challenges and regulatory changes that have made a lot of foreign companies quit their investments in the country. We are able to adapt to the market dynamics and impact on our operating environment with over 350,000 job opportunities and boost the economy of the nation through our export operation.

    From the excellent productions in our Ibadan factory, we export to 11 West and Central Africa countries and recently to the USA, with $110 million annual foreign exchange from export, among other socioeconomic impacts. These achievements, which are worth celebrating, speak volumes of our strong contributions and the vital roles British American Tobacco has played in driving economic growth with social progress in our operating environment and also provide an opportunity for us to express gratitude to our employees, partners and stakeholders, whose unwavering support and dedication have been instrumental in our success. Their commitment and passion have been integral to our journey toward manufacturing excellence.

    In essence, celebrating 20 years of manufacturing excellence is not just about looking back at past achievements but also about looking forward with optimism and determination toward a future of continued success and positive impact as BAT Nigeria is here for the long haul.

    How has BAT Nigeria’s Ibadan factory evolved and grown its manufacturing capabilities while achieving sustainability milestones over the past two decades?

    British American Tobacco Nigeria has undergone substantial evolution and growth in terms of its manufacturing capabilities, reflecting its commitment to meeting the dynamic needs of the market and its stakeholders. BAT Nigeria has continually invested in upgrading its manufacturing facilities with cutting-edge technologies. These advancements have enhanced production efficiency and quality control measures, enabling the company to stay competitive in the manufacturing industry.

    Also, BAT Nigeria places a strong emphasis on maintaining high-quality standards across its manufacturing operations. The company adheres to stringent quality control protocols and certifications to ensure that our operations meet or exceed both regulatory requirements and consumer expectations for safety.

    We have also integrated sustainability practices into our manufacturing processes, aiming to minimize environmental impact and promote social responsibility. In order to reduce our carbon footprint, in 2022, we transitioned from diesel[-powered] to gas-powered generation, and in 2023, we installed our 1.4-megawatt solar plant in our manufacturing facility, which was recently launched by the executive governor of Oyo State, Seyi Makinde, during our 20th anniversary celebration. We also installed a wastewater treatment plant with a 30,000-cubic-meter storage capacity to recycle and reuse all wastewater. This earned us the Alliance for Water Stewardship (AWS) certificate. These initiatives encompass our evolution and efforts to reduce energy consumption, minimize waste generation [and] support local communities, to promote responsible business practices within the manufacturing sector.

    The success of BAT Nigeria’s manufacturing operations, particularly at the Ibadan factory, can be attributed to several key strategies and initiatives that have been instrumental in achieving milestones, beginning with our investment in the state-of-the-art manufacturing facility and sustainable technologies that enable efficient resource utilization and minimize environmental impact. These strategies have led to 100 percent waste recycling and transitioning from diesel to gas operation at our Ibadan facility.

    BAT fosters a culture of continuous improvement, where employees are encouraged to identify opportunities for optimization and innovation across all aspects of manufacturing operations. We also work closely with our suppliers and partners to promote responsible sourcing practices and ensure the integrity of our supply chain. This proactive approach enables the implementation of cost-saving measures, quality enhancements and sustainability initiatives.

    Another factor that has contributed to the success we are celebrating is our large investments in human capital training and development programs to equip employees with the skills and knowledge necessary to excel in their roles and contribute to manufacturing excellence. This includes technical training on operating equipment, safety protocols and environmental stewardship practices.

    How does BAT Nigeria guarantee the highest quality standards in its manufacturing processes while simultaneously prioritizing sustainability and environmental considerations, as outlined by the AWS and the International Renewable Energy Certificates (IREC)?

    We implement rigorous quality control measures at every stage of the manufacturing process, from sourcing raw materials to packaging finished products. This includes comprehensive testing, inspections and audits to ensure that our products meet or exceed regulatory requirements and consumer expectations for safety, consistency and quality.

    By adhering to internationally recognized certifications and standards for quality management, environmental management, and occupational health and safety, we foster a culture of continuous improvement, where employees are empowered to identify opportunities for enhancing quality, efficiency and sustainability in manufacturing operations. This includes implementing lean manufacturing principles, conducting root cause analyses and investing in training and development to drive continuous improvement initiatives.

    By prioritizing quality, sustainability and environmental considerations in our manufacturing practices, we not only meet regulatory requirements and consumer expectations but also contribute to the long-term viability and resilience of our business and the well-being of the communities and environments in which we operate.

    BAT Nigeria prioritizes maintaining the highest quality standards in its manufacturing processes while adhering to sustainability and environmental principles outlined by the Alliance for Water Stewardship and the International Renewable Energy Certificates.

    Our dedication to sustainability extends beyond energy efficiency and waste reduction. We prioritize responsible water management practices, evident in our state-of-the-art wastewater treatment plant. This impressive facility boasts a 30,000-cubic-meter storage capacity, allowing us to capture and treat all effluent wastewater generated during production. This commitment to water stewardship ensures no untreated wastewater is released into the environment.

    More importantly, we don’t simply treat the wastewater; we reuse it. In 2023 alone, we successfully recycled a significant amount—17,388 cubic meters of treated wastewater. This recycled water is likely used for noncritical processes within the factory, reducing our dependence on freshwater resources.

    This approach exemplifies our commitment to minimizing our environmental impact and operating responsibly. By effectively managing our wastewater, we not only conserve precious freshwater resources but also demonstrate our alignment with the principles set forth by the AWS certification that we hold.

    The IREC compliance translates to our using energy-efficient machinery and exploring renewable energy sources in line with the recently commissioned 1.4 MW solar plant. This reduces the factory’s dependence on fossil fuels and lowers our carbon footprint.

    This multifaceted approach allows BAT Nigeria to be a leader in manufacturing excellence. We believe this commitment to quality, sustainability and responsibility sets us apart and contributes to a brighter future.

    As BAT Nigeria celebrates two decades of manufacturing excellence in a multi-category industry, how will you leverage your achievements to further enhance and sustain your competitive advantage? Additionally, how does your annual environmental, social and governance (ESG) forum contribute to this strategy, fostering collaboration and innovation for a sustainable future?

    As we celebrate 20 years of manufacturing excellence, we are committed to further enhancing and sustaining our organization’s competitive advantage in the industry through strategic initiatives and forward-thinking plans. Here are some of our key plans:

    We will continue to invest in cutting-edge technologies beyond what we have achieved so far and innovation to optimize our manufacturing processes, improve efficiency and enhance product quality.

    We will reinforce our commitment to sustainability and environmental stewardship by implementing additional initiatives to minimize our environmental footprint, reduce waste generation and promote responsible sourcing practices. With a steadfast commitment to sustainability, we will sustain our recycling cigarette butts initiative and annually hold our private sector ESG forum to continually drive our advocacy for a sustainable environment in alignment with the sustainable development goals.

    By implementing these plans and initiatives, we aim to further enhance and sustain our organization’s competitive advantage in the industry, ensuring continued success and growth for the next 20 years and beyond.

    Our annual ESG forum plays a critical role in these strategies by fostering collaboration and innovation for a sustainable future. The forum brings together industry stakeholders, experts and thought leaders. This allows BAT Nigeria to share its own sustainability journey and learnings while also gaining valuable insights from others.

    Added to this, by facilitating open discussions on key ESG challenges and solutions, the forum fosters collaboration across the industry. This can lead to the development of innovative approaches to tackling environmental and social issues.

    The ESG forum allows BAT Nigeria to stay abreast of emerging trends and best practices in sustainability. This ensures we can continuously adapt and improve our strategies to maintain a competitive edge in a future increasingly focused on ESG performance.

    Is there any message or reflection you would like to share with the employees, stakeholders and customers who have been a part of this 20-year journey of manufacturing excellence?

    I would like to extend my appreciation to all our employees and stakeholders, who have been integral to our 20-year journey of manufacturing excellence. The BAT Nigeria team’s unwavering support, dedication and commitment have been instrumental to our success and achievements over the years.

    As we reflect on this milestone, we are reminded of the collective efforts, resilience and passion that have propelled us forward, even in the face of challenges and uncertainties. Together, we have overcome obstacles, embraced opportunities, and [we] continuously strive for excellence in everything we do.

    As we embark on the next phase of our journey, we remain committed to upholding the highest standards of excellence and sustainability in all aspects of our operations. Together, we will continue to innovate, collaborate and lead the way toward a future of continued success and positive impact.

    Thank you for being a part of our 20-year journey of manufacturing excellence. Here’s to many more years of partnership, growth and shared achievements ahead.

  • ITC Shares Jump on BAT Sale

    ITC Shares Jump on BAT Sale

    Timon Schneider/Wirestock

    ITC’s share price jumped more than 8 percent on March 13 after British American Tobacco sold a $2 billion stake in the Indian conglomerate, reports Reuters.

    The share price had initially fallen in the wake of BAT’s original announcement, as investors were uncertain of the transaction’s conditions.

    The sale of 436.9 million shares, representing about 3.5 percent of ITC’s outstanding shares, still leaves BAT with a stake of more than 25 percent in the company.

    Cigarettes are ITC’s largest business, accounting for more than 40 percent of its revenue. The company has been working to consolidate its business, with plans to spin off its hotel business.

    BAT said it intends to use the net proceeds to buy back BAT shares over a period ending December 2025, starting with £700 million in 2024. “This will enable the allocation of operating cashflow to fund investment in our transformation, continue to deleverage towards our new target range of 2-2.5x adjusted net debt/adjusted EBITDA, while also maintaining a progressive dividend and supporting a sustainable share buyback,” the company wrote on its website.

  • BAT Inaugurates Innovation Center

    BAT Inaugurates Innovation Center

    Photo: BAT

    Included in British American Tobacco’s new innovation center at Southampton, U.K., is a nicotine-pouch pilot plant that allows its researchers to go from concept to trial product in an hour. The investment in the pilot plant is presumably an indication of the confidence the company has in nicotine pouches, which sit comfortably alongside nicotine replacement therapy products on the continuum of risk and that are perhaps the most environment friendly of all the lower-risk products being used to assist smokers move away from cigarettes.

    Officially opened on March 7 in the presence of BAT’s entire management board, the new center is housed within BAT’s research and development facility, which has been in operation since 1956 on a site occupied by the company for more than 100 years.

    In a press note, BAT said the £30 million ($38.56 million) investment would support its mission to become a predominantly smokeless business in which 50 percent of its revenue was derived from non-combustibles by 2035.

    The center provides nine specially designed technical spaces to aid the development of BAT’s portfolio of new category products. “These spaces are dedicated to research for modern oral nicotine pouches, for liquids and flavor for vapor products, for heated tobacco products, and for well-being and stimulation beyond nicotine,” the press note said. “The investment will also support work on packaging, engineering, innovation development and system integration…

    “The new facilities will bring together cross-functional and key R&D teams—with 400 highly specialized scientists and engineers, drawn from a range of fields including biotechnology and clinical trials. These teams will accelerate the development of the next generation of BAT’s new category products and provide the robust evidence necessary to encourage adult smokers to switch to less risky alternatives, backed by science.’

    James Murphy, director, research and science at BAT, said, “The opening of this new facility marks an important milestone in BAT’s transformation and will play a key role in making a smokeless future a reality.”

    Meanwhile, BAT said it had more than 1,600 specialists spread across the U.K., the U.S., Brazil, Indonesia, Malaysia and China. “The £30 million investment in the Southampton facility follows the opening of BAT’s innovation centers in Trieste, Italy, in 2021 and in Shenzhen, China, in 2022, and an investment of £300 million a year in R&D to develop new category products and establish substantiation of their reduced risk potential,” the company said.

  • Italy: BAT Fined Over Heated-Tobacco Ads

    Italy: BAT Fined Over Heated-Tobacco Ads

    Photo: BAT

    BAT’s Italian division has been fined €6 million ($6.4 million) for “misleading advertising of a heated-tobacco product,” according to Barron’s. Amazon was fined €1 million for the same reason.

    According to the AGCM watchdog, BAT and Amazon advertised the Glo Hyper X2 and Glo Hyper Air devices without making “information about the tobacco/nicotine consumption connected to the use of these devices and the prohibition of their sale to minors” clear.

    The products were marketed “as simple electronic devices and mere design objects,” the watchdog said.

    “This is seriously misleading conduct, which induces the customer to buy a product that poses health risks and is banned for minors,” the authority said.

    An investigation into the marketing of the heated-tobacco products began in April 2023.

    BAT plans to appeal the fine, according to Bloomberg.  

    “We are clear that our products are for adults only, and we adhere to the highest standards of conduct to prevent underage use of any nicotine product,” a BAT Italia spokesperson said. “We cooperated with Italian authorities and implemented all suggested changes to our marketing immediately. While we acknowledge the decision, we plan to appeal.”